Wednesday, January 04, 2012

Shylock was an amateur

Shylock - the caricature of a moneylender demanding his pound of flesh
- has nothing on the payday loan sharks of today. Interest rates of up
to 5000 percent APR - and there is no decimal point missing there -
have been quoted for these philanthropic uncles who help the poor to
make ends meet. Even the more modest of them are charging 1800 percent
- the sort of figure that would have had Shylock's eyes watering.

And if the poor can't pay, never mind, these kind people will roll
over their debts adding interest to interest and then keep them in
Chronic debt. Shelter estimate that many could lose the homes they are
desperately trying to hold on to.

A YouGov survey for Shelter in December 2011 asked 4,014 people in
Great Britain if they had used payday loans, unauthorised overdraft,
other loan or credit cards to help pay their rent or mortgage in the
last 12 months.

One in seven respondents (15%) who took part said yes, representing a
national figure of almost seven million people, with almost one
million people using payday loans.

Have no fear the government are going to "look into it." Don't hold
your breath, they are still "looking into" the banks.

The conditions of the working class in the UK are intolerable but the
milk-and-water opposition are quite prepared to tolerate them. From
inside their cosy little bubble of padded expense accounts it probably
looks quite rosy.

A party of the working class would not put up with this.

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